news bulletin - Maine Autodealers Association

NEWS BULLETIN
Maine Automobile Dealers Association
180 Civic Center Drive
P. O. Box 2667
Augusta, Maine 04338-2667 DIAL 623-3882
e-mail:[email protected]
FAX 623-2318
2012-3
DISTRIBUTION
• General Manager
• Office Manager
• Parts Manager
• Sales Manager
• Service Manager
TIME QUALITY DEALER HONOR TO BRIDGTON DEALER
Daniel Macdonald, president of Macdonald Motors, a Chrysler-Dodge-Jeep-RAM dealership in
Bridgton, is one of a select group of dealers from across the country who was honored as a TIME
th
Magazine Quality Dealer (TMQDA) at the 95 annual National Automobile Dealers Association (NADA)
Convention & Exposition held recently in Las Vegas.
The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and
highly coveted honors. Recipients are among the nation’s most successful auto dealers who must also
demonstrate a long-standing commitment to community service. Macdonald, 63, was chosen to
represent the Maine Automobile Dealers Association – one of only 50 auto dealers, from 17,000
rd
nationwide, nominated for the 43 annual award. The award is sponsored by TIME Magazine in
association with Ally Financial, and in cooperation with NADA.
A lifelong resident of Bridgton, Macdonald graduated from the local high school and earned his
undergraduate and master’s degrees in mathematics and administration from the University of Southern
Maine, graduating in 1972. He was president of Tau Kappa Epsilon and on the dean’s list in graduate
school. “After college, I taught math for a short time at the Maine Correctional Institute before returning
home to give the family business a fulltime try 39 years ago,” he says.
“I grew up in the business, with my father starting the dealership after WWII in 1946,” says
nominee Macdonald. “At 5 years old, I would tape the temporary plates to the back window when
customers took delivery at our home.” He has worked in all positions at the store – from service writer
and technician to parts manager – and today, Macdonald and his brother, Bob, jointly own Macdonald
Motors and a Ford-Lincoln dealership in Conway, New Hampshire. Dan’s son (Bill) and his niece (Mary)
are general managers at Bridgton and Conway respectively. Macdonald Motors is a Chrysler Five Star
dealership and has a high repeat sales and service clientele.
In the area of community service, Macdonald is a member of the Lions Club, Bridgton Chamber
of Commerce and provides a representative to Lake Region High School’s Automotive Advisory Board.
He served as president of the Bridgton Revitalization Committee, a group that planned, designed,
fundraised, oversaw and implemented a rebuilding plan for approximately one mile in the village. The
plan replaced the road on Main Street and added new sidewalks and water system, upgraded the septic
system, rebuilt the electrical and phone system, installed decorative lighting and built parks and a
playground, along with a new town office/courthouse and police station.
This success was one of his most meaningful accomplishments. “My town’s infrastructure was
deteriorating, and downtown had many vacant buildings, which led to a less than desirable business
climate,” he explains. “We designed, funded and rebuilt Main Street, creating a business-friendly
atmosphere to fill the vacant buildings and create jobs for our local people.”
2012-4
FEDERAL DOT BACKS UP NEW CELL PHONE
USE RESTRICTIONS WITH STEEP CIVIL PENALTIES
Effective January 3, 2012, a new DOT regulation prohibits commercial motor vehicle drivers from
using a hand held mobile device while operating a commercial motor vehicle. For the purposes of this
regulation, a “commercial motor vehicle” is one which is over 10,000 lb. GVW or is hauling hazardous
materials which requires placarding.
Drivers may only initiate, answer or terminate a call if it can be done by touching a single button
on a cell phone, ear piece, steering wheel or instrument panel. A driver may not even reach for the
phone if the driver cannot do so while remaining in a seated position and properly restrained by a seat
belt. The rule includes a prohibition against reading or manually composing, while driving, an electronic
message such as text messages, e-mails or other electronic communications. One obvious solution to
this issue is to require drivers to pull off the road before utilizing an electronic communication device.
Drivers cited for violating this new rule are subject to federal civil penalties up to $2,750 for each
violation, and are subject to loss of license for multiple violations. In addition, employers found to have
permitted drivers to use hand held cell phones while operating a commercial motor vehicle face a federal
civil penalty up to $11,000. In addition to this new DOT rule, Maine, like many states, has passed
restrictive distracted driving laws that cover all drivers. All employers should consider adopting written
policies limiting an employee’s use of mobile devices while operating a motor vehicle as part of the
employee’s job.
WHY YOUR FACTORY AND CROSS-SELL SALES CAN BE WRONG?
Dealers remark to MADA with some frequency that the sales numbers shown on Cross-Sell and
in some manufacturer reports do NOT properly reflect actual dealership sales,
MADA is currently
working with both the Maine Bureau of Motor Vehicles (BMV) and INFORME, the private entity which is
the authorized seller of Maine’s BMV data, to determine the causes for the inaccurate sales numbers.
While the BMV and INFORME operations may be part of the solution (more in future bulletins),
dealership operations could also improve accuracy. The title application is the most important
document. There are two (2) entries in box 28 on the title application which ensure accuracy from the
dealership perspective – Dealer Type (check “D”) and Dealer Plate Number. Please review your title
applications to make sure these entries are completed and are accurate.
The second dealership operation to review is the timing of title application submission.
Completed title applications should be forwarded to BMV daily – the quicker the mailing, the sooner the
information gets into the BMV system.
A dealership’s periodic review of these two internal operations will help improve the accuracy of
the Cross-Sell and manufacturer sales reports.
MARK YOUR CALENDAR – MADA ANNUAL MEETING & CONVENTION
JUNE 29 to JULY 1 AT HARBORSIDE HOTEL, BAR HARBOR
Once again due to popular demand, your Association’s 2012 annual meeting and convention will
be held over the weekend of June 29 to July 1 at the Harborside Hotel and Marina in downtown Bar
Harbor. Mt. Desert Island, Acadia National Park, and Bar Harbor itself offer such a multitude of
educational and recreational attractions that MADA dealers, family members and guests want to visit
again this year. MADA is already at work on convention programming. If any dealer has suggestions for
convention events, please contact your Association office. But, first and foremost, mark your calendar –
you will want to be in Bar Harbor over the June 29 – July 1 weekend this year!
IRS PROVIDES TAX GUIDANCE RE: FACTORY IMAGE PAYMENTS
At NADA’s recent Las Vegas convention, MADA visited with IRS officials to review proper tax
treatment of various dealership operations. One area of discussion was manufacturer facilities image
programs. Please find attached the IRS informational document on these payments. As always,
dealerships are encouraged to discuss these issues with their CPA or tax professional.
NEWS BULLETIN
Maine Automobile Dealers Association
180 Civic Center Drive
P. O. Box 2667
Augusta, Maine 04338-2667 DIAL 623-3882
e-mail:[email protected]
FAX 623-2318
2012-5
BMV TITLE PROCESSING TIME
Just as MADA hears from dealerships about sales accuracy, so too are dealerships calling about
the time it takes before a lienholder or vehicle owner receives their title from BMV. Early retirements,
BMV employee transfers, state budget restraints and the State hiring freeze have all combined to
lengthen the time for title processing at BMV. There are currently significant backlogs at BMV for both
new and used sales. At the present time, title on a brand new vehicle should be received by a lienholder
or the owner about 4-5 weeks after the date of sale, assuming timely submission by the dealership. On a
used vehicle sale by a dealership, which encompasses additional paperwork and usually a delay at the
dealership as it waits for the prior title, the delivery of the new title to the new lienholder/owner will likely
take 10-12 weeks from date of sale. MADA has held meetings with BMV to provide information which
dealerships are receiving from retail lenders demanding their titles, letters which emphasis the potential
liability on dealerships for not providing a new title.
What can a dealership do to help shorten the above time intervals? The first is to mail completed
title applications and all supporting documents to BMV on the date of sale. To accomplish this mailing on
a used vehicle sale, it is imperative to obtain or absolutely know the whereabouts – and expected receipt
date – of the prior title. MADA realizes that the used vehicle sale requires the cooperation of the prior
lienholder (if there was one), which can sometimes be a challenge. In the end, the quicker the completed
title submission is mailed to BMV, the sooner the title will be processed and mailed.
MADA and BMV continue to discuss the need for more electronic transfer of information from
dealerships to BMV, a transition which will not be available tomorrow, but which is advancing through the
State’s information technology system.
MADA SPRING EDUCATIONAL MEETINGS
April will be MADA’s spring educational month. Regional meetings will be scheduled to review
changes made by the Maine Legislature, issues raised by State and Federal agency regulators, and
topics of a national nature affecting dealership operations. These regional meetings will be held in
Presque Isle, Bangor, Augusta and Portland. In addition to these workshops for dealer principals and
senior management, MADA will also hold an extensive series of Right-To-Know, Hazardous Waste, and
Safety Director training sessions for dealership personnel affected by the laws and regulations. Please
watch for announcement mailings, with registration materials, to be sent in mid-March.
SPOT DELIVERIES
Maine law specifies the disclosures which have to made at the time of sale, as well as the steps
that must be taken should the financing arrangements change and the customer cannot receive what was
expected at the time of spot delivery. The enclosed page (white paper) provides the language of Maine
law on one side (please pay particular attention to all costs reimbursable to the customer). The other side
of the page provides a potential form which dealerships might utilize to meet their disclosure obligations in
spot delivery situations. Whatever disclosure form your dealership drafts and utilizes in spot delivery
situations must comply with the provisions of Maine law, and dealerships are required to follow the
remedies detailed in the law in the event that the terms of a spot delivery sale cannot be met.
Obviously, there will be spot deliveries which will occur during the course of business at a
dealership. While it is in everyone’s best interest to totally understand the terms of the sale and to have
these terms confirmed at the time of delivery, that is not always possible. However, dealership personnel
must be aware of the requirements of Maine law with respect to the disclosures and remedies associated
with a spot delivery situation. Please review the law with appropriate dealership personnel.
2012-6
DEALER P & C INSURANCE and BONDING REQUIREMENTS
Maine law requires all licensed Maine dealers to submit copies of a valid bond, insurance policy,
or R1348 filing (from Property and Casualty insurer) covering the period of their dealer license. The
Bureau of Motor Vehicles (BMV) has sent licensed dealerships a letter stating that BMV is no longer able
to assume the responsibility for informing you when your bond, insurance policy or R1348 requirements
are about to expire within 30 days.
This policy became effective February 1, 2012. Therefore, it may be advisable for you to contact
your insurance company periodically to ensure you still have a valid policy with them, and that you have
provided the BMV Dealer Section with the proper documentation to renew your license. As required by
law, BMV will deny or suspend dealer licenses for failure to maintain adequate insurance and bonds.
Should you or your insurance company have questions regarding these requirements on Maine
Dealers, please feel free to contact your Association office or the BMV dealer section at 624-9000,
extension 52143.
NADA UNIVERSITY TRAINING
As part of your membership in the National Automobile Dealers Association (NADA), and all
Maine franchised dealerships are NADA members, dealerships have access to a variety of training and
educational materials at NADAuniversity.com. Please find below some information on recent additions to
those offerings, and the NADA University toll free number for any questions or assistance you or your
personnel may need:
1. Online Training at NADAuniversity.com in Learning Hub, Internet:
The 2012 NADA-ATD Convention presented 13 Internet Solutions workshops,
including “Ten Digital Marketing Strategies that Work Now,” “Connect with
Transparency,” “The Five Most Important Digital Reports for Dealers,” “Improve Your
Online Reputation,” and “Your Dealership’s Presence Across Google Platforms.”
They will be online in the Learning Hub by March 9 – and recordings may be
purchased now in various formats at the NADA U Store!
Also, NADA U is presenting a series of four NADA-Google webinars as a member
benefit! “The Smartphone Revolution” and “The Google + Project for Dealers” are
available now, on-demand (and available to non-members for purchase in the NADA
U Store).
2. Online Training at NADAuniversity.com in Resource Toolbox, Internet:
a) Internet Process Management Checklist (Driven Management Guide)
b) Leveraging the Internet to Drive Sales (Driven Management Guide)
c) Use Video to Drive Virtual Sales (MarketINSIGHT webinar)
d) Car Shopping’s New Normal (MarketINSIGHT webinar)
Visit www.NADAuniversity.com, sign in with your NADA member number, immediately access your
complimentary resources or click on NADA U Store to purchase other resources. Call 800.557.6232 for
assistance.
BE AWARE OF EMAIL APPEARING TO BE OFFICIAL
Recent messages appearing to be from the Federal Trade Commission (FTC) and the national
office of the Better Business Bureau (BBB) contain subject lines something like “Pending Customer
Complaint – URGENT”. These messages have NOT been sent by the FTC or BBB, but instead contain
computer virus or malware, i.e. TROUBLE for your system. Please be careful in opening any links to
messages appearing to come from official sources – generally agencies do not initially contact
businesses in such a manner when there is a problem.
Addendum to Retail Buyers Order (Retail Installment Contract)
SPOT DELIVERY DISCLAIMER
This addendum shall be incorporated into the Retail Buyers Order(Retail Installment
Contract) dated __________________________ in regard to the vehicle described as follows:
YEAR_______
MAKE_____________
MODEL_______________
VIN________________________________
The undersigned customer understands and acknowledges that credit approval for the
terms agreed upon in the Retail Buyers Order (Retail Installment Contract) identified
above has not been obtained at this time. The undersigned customer further understands
and agrees to return the above referenced vehicle to (dealership name) in its original
condition immediately (no more than 24 hours) upon notification of credit denial.
The undersigned customer further understands that credit approval may take some
time, and hereby agrees not to register the above referenced vehicle or to pay any taxes
until (dealership name) notifies the undersigned customer that credit approval has been
obtained, which will be no later that two (2) business days after customer began to drive
the vehicle.
If financing cannot be obtained for the terms agreed upon in the Retail Buyers
Order (Retail Installment Contract) identified above, the customer shall receive:
a)
reimbursement of the entire vehicle purchase price or, if a leased
vehicle, the lease payments made to date, including any paid
finance charges on the purchased or leased vehicle;
b)
reimbursement of all charges pertinent to the contract, including,
but not limited to, sales tax, license and registration fees and
similar government charges; and
c)
the vehicle traded in or, if the vehicle is not available, the
trade-in value of the vehicle established in the contract.
Sections a, b and c above do not apply to any sale cancelled by (dealership name)
due to material misrepresentation made by the undersigned customer.
The undersigned customer understands that (dealership name) does not provide any
insurance coverage on the above referenced vehicle, and that it is the undersigned
customer's responsibility to secure and maintain liability, property and comprehensive
insurance coverage.
The undersigned customer has read and understands the above information, and acknowledges
receiving a copy.
Date: _______________
Customer Signature:_______________________________________________
Date: _______________
Customer Signature:_______________________________________________